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PART 1. DEFINING MARKETING FOR THE NEW REALITIES DOSEN: CITRA KUSUMA DEWI SE. , PART 1. DEFINING MARKETING FOR THE NEW REALITIES DOSEN: CITRA KUSUMA DEWI SE. , MBA

CHAPTER QUESTIONS Why is marketing important? What is the scope of marketing? What are CHAPTER QUESTIONS Why is marketing important? What is the scope of marketing? What are some core marketing concepts? What forces are defining the new marketing realities? What new capabilities have these forces given consumers and companies? What does a holistic marketing philosophy include? What task are necessary for successful marketing management?

UNILEVER REVERSE INNOVATION • Unilever is fundamentally changing how it is doing its marketing, UNILEVER REVERSE INNOVATION • Unilever is fundamentally changing how it is doing its marketing, including putting more emphasis on developing markets. • Reverse innovation by applying branding and packaging innovations from developing markets to recession-hit developed markets. • In Spain, it now sells Surf detergents in fivewash packs • In Greece, it offers mashed potatoes and mayonnaise in small packages

THE VALUE OF MARKETING • Finance, operations, accounting and other business functions won’t really THE VALUE OF MARKETING • Finance, operations, accounting and other business functions won’t really matter without sufficient demand for products and services so the firm can make a profit • Thus, financial success often depends on marketing ability • Marketing’s value extends to society, it has helped introduce new or enhanced products that ease or enrich people’s lives. • . . /Video/The IKEA Group - The Story of How We Work. mp 4

ikea that noticed that people wanted good furnishings at a subtantially lower prices, it ikea that noticed that people wanted good furnishings at a subtantially lower prices, it created knockdown furniture. Create a better live: 1. Passionate about live at home visit home, measure things, focus those who have thin wallet good home are for everybody 2. Democratic design unique products 3. Entire value chain: partnership with supplier, using resources carefully, low prices because high volume and effective transportation (flat pack, little fuel) can influence all value chain 4. Relationship with customer partnership “together save money” 5. Own by foundation earn money before spend it gives money through charity or save for rainy days

THE SCOPE OF MARKETING THE SCOPE OF MARKETING

WHAT IS MARKETING ? Marketing is a societal process by which individuals and groups WHAT IS MARKETING ? Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and value with others

WHAT IS MARKETING MANAGEMENT? Marketing management is the art and science of choosing target WHAT IS MARKETING MANAGEMENT? Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. 1 -8

9 “SELLING IS ONLY THE TIP OF THE ICEBERG” “There will always be a 9 “SELLING IS ONLY THE TIP OF THE ICEBERG” “There will always be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available. ” Peter Drucker

WHAT IS MARKETED? 1. Goods 2. Services 3. Events 4. Experiences 5. Persons The WHAT IS MARKETED? 1. Goods 2. Services 3. Events 4. Experiences 5. Persons The Rolling Stones have done a masterful job of marketing their rebellious form of rock and roll to audiences of all ages.

WHAT IS MARKETED? 6. Places 7. Properties 8. Organizations 9. Information 10. Ideas For WHAT IS MARKETED? 6. Places 7. Properties 8. Organizations 9. Information 10. Ideas For a city like Las Vegas that thrives on tourism, good marketing is essential.

KEY CUSTOMER MARKETS Consumer markets Global markets Companies selling mass consumer goods and services KEY CUSTOMER MARKETS Consumer markets Global markets Companies selling mass consumer goods and services spend a great deal of time establishing a strong brand image Companies in the global marketplace decide which countries to enter; how to enter each, how to adapt, how to price and how to design communications Business markets Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings. Nonprofit/Government markets limited purchasing power such as churches, universities, charitable organizations, and government agencies need to price carefully

CORE MARKETING CONCEPTS CORE MARKETING CONCEPTS

 Needs, wants, and demands Impressions and Engagement Target markets, positioning, segmentation Value and Needs, wants, and demands Impressions and Engagement Target markets, positioning, segmentation Value and Satisfaction Offerings and brands Competition Supply chain Paid, Owned and Earned Media Marketing environment

NEEDS WANTS AND DEMANDS Needs basic human requirements Wants specific objects that might satisfy NEEDS WANTS AND DEMANDS Needs basic human requirements Wants specific objects that might satisfy the need Demands with purchasing power

SEGMENTATION, TARGET MARKETS & POSITIONING identify and profile distinct groups of buyers (Segmentation) decides SEGMENTATION, TARGET MARKETS & POSITIONING identify and profile distinct groups of buyers (Segmentation) decides which present the greatest opportunities (Targeting) develops a market offering that it positions in the minds of the target buyers as delivering some central benefits (Positioning)

OFFERINGS AND BRANDS The intangible value proposition is made physical by an offering, which OFFERINGS AND BRANDS The intangible value proposition is made physical by an offering, which can be a combination of products, services, information, and experiences A brand is an offering from a known source. ?

MARKETING CHANNELS Communication channels deliver and receive messages from target buyers Distribution The marketer MARKETING CHANNELS Communication channels deliver and receive messages from target buyers Distribution The marketer uses distribution channels to display, sell, or deliver the physical product or service(s) to the buyer or user. Service The marketer also uses service channels that include warehouses, transportation companies, banks, and insurance companies.

PAID, OWNED AND EARNED MEDIA The rise of digital media gives marketers a host PAID, OWNED AND EARNED MEDIA The rise of digital media gives marketers a host of new ways to interact with consumers and customers. • Paid Media: media which allow marketers to show their ad or brand for a fee. , like TV, magazine and display ads, • Owned Media: communication channels marketers actually own, like a company or brand brochure, web site, blog, Fb page etc. • Earned Media: streams are which consumers, the press or other outsiders voluntary communicate something about the brand via WOM, buzz or viral marketing methods.

IMPRESSIONS AND ENGAGEMENT • Impressions, which occurs when consumers view a communication, are a IMPRESSIONS AND ENGAGEMENT • Impressions, which occurs when consumers view a communication, are a useful metric for tracking the scope or breadth of a communication’s reach that can also be compared across all communication types. • Engagements is the extends of a customer’s attention and active involvement with a communication. Some online measures of engagement are Fb likes, Twitter tweets, comments on blog, sharing of video, etc.

VALUE AND SATISFACTION Value: the sum of the tangible and intangible benefits and costs VALUE AND SATISFACTION Value: the sum of the tangible and intangible benefits and costs to consumer. . . /Video/Value Creation Through the Marketing Mix. mp 4 Value, a central marketing concept, is primarily a combination of quality, service, and price (qsp) Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations

SUPPLY CHAIN • The supply chain is a channel stretching from raw materials to SUPPLY CHAIN • The supply chain is a channel stretching from raw materials to components to finished products carried to final buyers. • Problems with a supply chain can be damaging or even fatal for a business

COMPETITION Competition includes all the actual and potential rival offerings and substitutes a buyer COMPETITION Competition includes all the actual and potential rival offerings and substitutes a buyer might consider.

MARKETING ENVIRONMENT Task Environment includes the actors engaged in producing, distributing, and promoting the MARKETING ENVIRONMENT Task Environment includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers. Broad environment o o o Demographic environment Economic environment Socio-cultural environment Natural environment Technological environment Politic-legal environment

THE NEW MARKETING REALITIES THE NEW MARKETING REALITIES

 • Technology • Globalization • Social Responsibility • . . /Video/Dramatic Shift in • Technology • Globalization • Social Responsibility • . . /Video/Dramatic Shift in Marketing Reality (Scholz & Friends). mp 4

MARKETING MANAGEMENT TASKS Develop market strategies and plans Capture marketing insights Connect with customers MARKETING MANAGEMENT TASKS Develop market strategies and plans Capture marketing insights Connect with customers Build strong brands Shape market offerings Deliver value Communicate value Create long-term growth